Italy probe alleges ADM insider tipped off slot machine ring 

Prosecutors in Cosenza have taken action against a criminal scheme involving large-scale tampering of online gaming machines across the province. 

The public prosecutor’s office announced on Monday that precautionary measures have been ordered against 15 individuals implicated in manipulating amusement with prize (AWP) machines, Italy’s popular category of slot-style devices. This resulted in suspected tax evasion and corruption.

A judge at the Cozenza court issued the preliminary ruling in cooperation with staff from gaming regulator Agenzia delle Dogane e dei Monopoli (ADM). 

They include two house arrests, six non-custodial restrictions and a one-year ban on operating gaming activities for seven individuals.

At this stage, the inquiry remains preliminary and none of the accused have yet faced trial.

Allegations of corruption

Preliminary evidence indicated the involvement of an organised criminal association that reportedly included the owner of a distribution company and a local official within ADM.

The ADM official allegedly leaked sensitive information about inspection dates and targets in return for payments. This enabled the concealment of illegal boards and the recovery, reformatting and redistribution of seized gaming components.

The network reportedly undertook complex cabling and activation system modifications to maintain their illegal operations and to evade detection.

The investigation

The investigation was initiated following ADM’s central gaming controls detecting “striking anomalies” in telematic data from numerous gaming machines. 

Extensive on-site inspections in commercial premises throughout the Cosenza province led to the seizure of 145 machines. The machines were suspected of containing a concealed second, tampered circuit board. Authorities confiscated approximately €80,000 ($89,188) in cash from these devices.

Cyber forensic analysis of seized smartphones, tablets, computers and memory media revealed a method to divert stakes from the monitoring network. The scheme also allegedly involved the installation of illicit cloned circuit boards alongside the authorised ADM-connected boards.

It also involved the use of remote wireless controls, modified cabling, timers, or monitor switches to route gameplay to the illegal boards, thereby allowing wagers to be collected “off the books”.

Another insider scheme

The investigation comes days after authorities launched a similar endeavour against former employees involved in a Gratta e Vinci scratchcards fraud. Authorities seized over €25 million in assets from five former employees of a gaming concessionaire.  

While the concessionaire company itself faced no accusations, prosecutors allege that the five individuals exploited privileged system access to identify winning tickets in advance. The scheme meant they effectively bypassed the game’s intended randomness. 

The trade body EGP-FIPE warned the Senate in June that the gambling sector is currently trapped in a “regulatory deadlock” that threatens to expand unregulated gambling activities in the country.